Suppose Capital and Labor Must Be Used in Fixed Proportions

question 12

Multiple Choice

Suppose capital and labor must be used in fixed proportions to produce widgets and that the price elasticity of demand for widgets is zero.Then the wage elasticity of demand for labor by widget makers will be

• A)+1.
• B)-1.
• C)0.
• D)infinite.

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Definitions:

Time Effectiveness

Time effectiveness refers to how well and efficiently time is managed and utilized to achieve desired outcomes.

Ongoing Process

A continuous operation or series of actions that evolve over time, indicating that it is not stationary but constantly moving or developing.

Deciding

The cognitive process of choosing between different options or actions.

Tasks

Refers to specific duties or work to be completed by a person or group.